Thread by @marcrjandrew

In 2008, Satoshi Nakamoto published the white paper that introduced Bitcoin.

The paper’s opening paragraph proves that Bitcoin, measured against Satoshi’s aim, is a failure.

But that's about to change.

Here are 5 facts about the #LightningNetwork for newbies:

Satoshi's writing is clear:

Bitcoin was invented to be an electronic cash in need of no third party (like a bank). It would make digital transactions cheaper, safer and more effective.

Read the opening paragraph for yourself here:

bitcoin.org/bitcoin.pdf

But today, despite an incredible rise that made it the fastest asset to a trillion dollars in history, almost no one uses Bitcoin as a currency.

That’s about to change, because of the #LightningNetwork.

Here are 5 facts to help understand this powerful new tech:

1) The #LightningNetwork is Bitcoin’s “second layer”

Every monetary system in history has scaled in layers.

History's most common “L1” was gold - all paper money was initially a promise to pay later in gold.

Today, US Treasuries are the global economy’s base layer.

For more on Layered Money, read @timevalueofbtc's terrific book on the topic:

amazon.com/Layered-Money-…

2) Lightning is Bitcoin’s bar tab option:

Lightning works like a bar tab - transactions are settled in channels as mutual IOU’s - until the final bill is settled on Bitcoin itself.

Here's more on how it works, from @gckaloudis and @CoinDesk

downloads.coindesk.com/research/Light…

3) Lightning had a huge 2021, and is growing exponentially.

The #LightningNetwork grew by 300% in 2021. But it's still in the earliest stages of an S-curve.

Why?

cryptobriefing.com/lightning-netw…

4) The #LightningNetwork is makes a digital transaction, any time of the day, among two parties anywhere in the world, instantaneous and free.

Transaction fees can be debilitating, especially in the developing world.

That's now all changed:

https://twitter.com/jackmallers/status/1428429890957848591?s=20

5) The #LightningNetwork's growth is driven by a network effect that will make it more and more useful

In open networks, every new participant strengthens the network.

That means once they achieve momentum, they’re unstoppable.

What happens when a new technology is a thousand times cheaper, and a thousand times faster, than its competition?

It wins.

Th #LightningNetwork is the internet's next transformative evolution.

To wrap!

The #LightningNetwork is a second layer Bitcoin solution that:

2) Can scale in layers, exponentially
3) Make global digital payments free and accessible
4) Is in the early stages of a massive network effect

And much more... but these facts alone are transformative.

And if you found this thread of value, follow me → @marcrjandrew

I write threads like this on what I'm learning about #Bitcoin and Lightning can build a new, more trusted, and fairer form of finance and governance.